New Survey Finds 1 in 10 US Workers are Digital Nomads: Social Contract and Policy Response Are Needed by Regulators and Corporations Alike New research from MBO Partners shows that while 11% of the U.S. workforce are now digital nomads, 36% operate without corporate consent, exposing companies to significant risks.
ASHBURN, VA
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August 20, 2024 08:00 AM Eastern Daylight Time
The latest research conducted by MBO Partners® reveals that digital nomadism like many other social norms has evolved, faster than relevant regulation and corporate policies from a niche lifestyle to a mainstream work movement, necessitating urgent action from employers to adopt comprehensive policies now and for a change in the social contract between workers and corporations. The 2024 State of Independence Report shows that 11% of the U.S. workforce, or 18.1 million workers, now identify as digital nomads. Despite this trend, 36% of these workers operate without formal employer consent, exposing companies to significant regulatory, tax, compliance, and cybersecurity risks. As more workers aspire to this lifestyle, formal, enforceable policies become critical, enabling employers to mitigate risks and capitalize on this rapidly growing workforce segment.
“Today, leading organizations know they must attract top talent to survive, including allowing workers to operate when and where they want,” said Miles Everson, CEO of MBO Partners. “Implementing formal policies to track and engage with remote and nomadic workers should be considered standard practice. In this case, policies aren’t restrictive, they help attract the most in-demand workers while reducing potential legal, regulatory, and IT risks. At the same time today’s social contract is outdated and needs to be changed to reflect the reality of workers’ rights and to properly align work arrangements to reduce the regulatory burden on corporate America."
Key trend insights revealed in this year’s study include:
Digital Nomadism has evolved from niche to normal. The 2024 report reveals that more than one in ten workers is now a digital nomad, reflecting a 4.7% increase from the previous year and a remarkable 147% growth since 2019. Digital nomads now constitute 11% of the U.S. workforce, reflecting that this way of working is now the new normal for independent workers and traditional employees alike.
Structured digital nomad programs are win-win for employers and workers alike. As digital nomadism becomes more prevalent, employers recognize the benefits of implementing these programs for talent acquisition and internal compliance with tax, legal and security policies.
Digital nomads are ambassadors for work-life balance. Digital nomads often serve as ambassadors for their companies, showcasing the attractive work-life balance that employers of choice can offer. By aligning work projects with employees’ travel plans, companies can create a win-win situation where both productivity and employee satisfaction are maximized. This alignment not only enhances the employee experience but also fosters a positive and dynamic company culture.
‘Slomading’ and ‘Tethered Nomading’ trends strengthen social connections. Four in ten (40%) of digital nomads plan to spend more time in the U.S. next year, both due to the increasing complexities of travel and because they may have some in-office requirements. In fact, 51% plan to travel exclusively within the U.S., up from 42% in 2022. Digital nomads visit fewer locations but spend more time at each stop, a trend known as “slomading.” This approach provides a more active social life, reduces travel stress, and improves work productivity and relational diversity.
Hidden corporate digital nomads create risks. Digital nomads with traditional jobs can leave their employers vulnerable to regulatory, tax, compliance, and legal risks. Despite these risks, few organizations have formal digital nomad policies. Many digital nomads work under informal agreements or without their employer’s knowledge, increasing legal and cybersecurity risks. About one-third of digital nomads with traditional jobs are “hidden,” meaning their companies are unaware of their nomadic status.
Millions aspire to be digital nomads. In 2024, 21 million workers expressed a desire to become digital nomads, with 45 million considering it. This shows a significant interest in the lifestyle, despite only 7% to 9% of these aspirants becoming digital nomads. This data highlights a ready pool of potential digital nomads to fuel the trend’s continued future growth.
To obtain a copy of the 2024 MBO Partners Digital Nomad research brief, please visit https://www.mbopartners.com/state-of-independence/digital-nomads
About MBO Partners®
MBO Partners is a direct sourcing platform that enables enterprises and independents to work efficiently together. Its unmatched experience and industry leadership enable it to operate at the forefront of the independent economy and consistently advance the next way of working. For more information, visit mbopartners.com.
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